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Advertising Content

Advertising Content Abstract Empirical evidence suggests that most advertisements contain little direct information. Many do not mention prices. We analyze a monopoly firm's choice of advertising content and the information disclosed to consumers. The firm advertises only product information, price information, or both, and prefers to convey only limited product information if possible. It is socially harmful to force it to provide full information if it has sufficient ability to parse the information imparted, nor does it help to restrict the information voluntarily provided. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Review American Economic Association

Advertising Content

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Publisher
American Economic Association
Copyright
Copyright © 2006 by the American Economic Association
Subject
Articles
ISSN
0002-8282
DOI
10.1257/000282806776157632
Publisher site
See Article on Publisher Site

Abstract

Abstract Empirical evidence suggests that most advertisements contain little direct information. Many do not mention prices. We analyze a monopoly firm's choice of advertising content and the information disclosed to consumers. The firm advertises only product information, price information, or both, and prefers to convey only limited product information if possible. It is socially harmful to force it to provide full information if it has sufficient ability to parse the information imparted, nor does it help to restrict the information voluntarily provided.

Journal

American Economic Review – American Economic Association

Published: Mar 1, 2006

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